Derivatives and Energy Risk Management

This two-day program is based upon our Derivative Products program, but is tailored to the needs of the energy industry. Options, futures, and swaps are covered using natural gas, crude oil and oil products, and power/electricity as the underlying commodities. Various types of hedging strategies are explained, including the use of basic option positions, as well as more advanced combination strategies. The program concludes with the use of swaps (fixed/float, index, basis, etc.) to meet customer needs and to modify risk, and includes the way in which a risk desk would hedge such positions.

Concepts of long and short, cash vs. futures markets (NYMEX, CBOT, etc.), exchange traded vs. OTC products, dealer vs. broker, bid/offer, are discussed prior to introduction of the derivatives themselves.